Editorial: Australian Markets Continue to Plummet and Mixed Markets for the US

It's all doom and gloom in Australia as the drought continues to have a knock-on effect across the industry. Prices have fallen by as much as 27 per cent in some areas compared to last year. Abattoirs are still reducing working shifts due to the low supply, and the high AU$ is doing little favours for the export markets. The only hope of a pick up in Japanese demand was scuppered this week as Japan announced that imports of Australian beef have fallen 21 per cent compared to last years figures.

The US Meat Export Federation (USMEF) have been busy promoting US beef, increasing Japanese demand for the product. In the calendar year to August, beef imports into Japan from the US were up 28 per cent on the last year. USMEF still have work to do in Korea, as concerns of mad cow disease restrict demands for US beef into the country, which is now only one third of what it was prior to 2003, when US imports were halted.

Across the US, the use of antibiotics in cattle continues to be a hot topic. Elsewhere in the US, cattle producers are opposing the acquisition of Pilgrim Pride by JBS, concerned that JBS will have too much control over the protein market. This comes as Irish producers have relayed their concerns that price pressure from meat processors is crippling the suckler herd industry.

On a more positive note, beef quality has taken a more dominant role in the markets, with advertising of beef quality programmes in the US and the UK red meat industry launching a new campaign to raise awareness of the health benefits of red meat.